Cheaper Shipping Rates Boost Key US Physical Crude Grades

Falling tanker rates are improving the export outlook for US crude, and prices for light sweet barrels, in particular, are getting a lift.

The differentials for WTI MEH and WTI Midland against benchmark US futures have firmed up this week thanks to the drop in freight costs. The flagship oil grades are also outperforming a variety known as sour crude. US medium sour Mars Blend is more similar to the sulfur-rich barrels produced in Venezuela, and Mars has remained under pressure as the US has said it’s already marketing some of the South American country’s supply.